Huntington Bancshares Pref Share HBANM 5.7 Perp 12/01/22 C | 8-K: FY2026 Q2 Revenue: USD 2.837 B

Revenue: As of FY2026 Q2, the actual value is USD 2.837 B.

EPS: As of FY2026 Q2, the actual value is USD 0.33.

EBIT: As of FY2026 Q2, the actual value is USD 896 M.

Financial Performance - Three Months Ended June 30, 2026

Net Income

Net income for Huntington Bancshares Incorporated was $727 million for the second quarter of 2026, marking a 39% increase from the prior quarter and a 36% increase from the year-ago quarter, including $152 million of pre-tax Notable Items for acquisition-related expenses. Net income attributable to Huntington Bancshares Incorporated was $727 million, a 39% increase from March 31, 2026, and a 36% increase from June 30, 2025. Net income applicable to common shares was $686 million, up 42% from March 31, 2026, and 35% from June 30, 2025.

Net Interest Income

Fully-taxable equivalent (FTE) net interest income was $2,072 million, an increase of 8% from the first quarter of 2026 and 40% from the second quarter of 2025. Net interest income was $2,052 million, up 9% from March 31, 2026, and 40% from June 30, 2025. The net interest margin (NIM) was 3.21%, a decrease of 3 basis points from the prior quarter but an increase of 10 basis points from the year-ago quarter.

Noninterest Income

Total noninterest income increased $103 million, or 15%, from the prior quarter to $785 million, and increased $314 million, or 67%, from the year-ago quarter. Key drivers for the year-over-year increase include: Capital markets and advisory fees increased $56 million (67%), Payments and cash management revenue increased $39 million (24%), Customer deposit and loan fees increased $33 million (35%), Wealth and asset management revenue increased $32 million (31%), and Mortgage banking income increased $25 million (89%). Leasing revenue also saw a significant increase of $19 million, or 190%, from the year-ago quarter.

Noninterest Expense

Total noninterest expense was $1,809 million, an increase of 2% from the prior quarter and 51% from the year-ago quarter. Excluding Notable Items, total adjusted noninterest expense increased $146 million, or 10%, from the prior quarter and $463 million, or 39%, from the year-ago quarter. Major components included personnel costs at $1,010 million, outside data processing and other services at $326 million, and equipment at $96 million. Notable Items in Q2 2026 included $152 million of acquisition-related expenses.

Income Before Income Taxes

Income before income taxes was $896 million, a 40% increase from both March 31, 2026 ($641 million) and June 30, 2025 ($638 million).

Provision for Credit Losses

Provision for credit losses was $132 million in the 2026 second quarter, an increase of $29 million year-over-year and a decrease of $26 million quarter-over-quarter. This represents a -16% decrease from $158 million on March 31, 2026, but a 28% increase from $103 million on June 30, 2025.

Credit Quality

Nonperforming assets (NPAs) were $1,612 million, or 0.85%, of total loans and leases, OREO, and other NPAs, compared to $852 million, or 0.63%, a year-ago. Nonaccrual loans and leases (NALs) were $1,589 million, or 0.84% of total loans and leases, compared to $842 million, or 0.62%, a year-ago. Net charge-offs (NCOs) were $119 million, representing an annualized 0.25% of average loans and leases. Total net charge-offs were $119 million for the three months ended June 30, 2026, up from $111 million for March 31, 2026, and $66 million for June 30, 2025, with commercial net charge-offs at $66 million and consumer net charge-offs at $53 million. The Allowance for Credit Losses (ACL) was $3.4 billion, or 1.78% of total loans and leases, consistent with the prior quarter. Total allowance for credit losses was $3,381 million at June 30, 2026, compared to $3,368 million at March 31, 2026, and $2,515 million at June 30, 2025.

Capital

The Common Equity Tier 1 (CET1) risk-based capital ratio was 10.0% at June 30, 2026, compared to 10.2% at the prior quarter end. The tangible common equity (TCE) ratio was 7.1%, up slightly from the prior quarter end and up from 6.6% a year ago. Tangible book value per share was $9.65, up $0.10, or 1%, from the prior quarter and up $0.52, or 6%, from a year ago. Huntington Bancshares Incorporated repurchased $159 million of common shares in the second quarter, totaling $309 million year-to-date.

Financial Performance - Six Months Ended June 30, 2026

Net Interest Income

Net interest income (FTE) was $3,982 million, a 36% increase from $2,924 million in the prior year period. Net interest income was $3,943 million, a 36% increase from $2,893 million in the prior year period.

Provision for Credit Losses

Provision for credit losses was $290 million, a 33% increase from $218 million in the prior year period.

Noninterest Income

Noninterest income was $1,467 million, a 52% increase from $965 million in the prior year period.

Noninterest Expense

Noninterest expense was $3,583 million, a 53% increase from $2,349 million in the prior year period.

Net Income Attributable to Huntington

Net income attributable to Huntington Bancshares Incorporated was $1,250 million, an 18% increase from $1,063 million in the prior year period.

Balance Sheet Highlights - As of June 30, 2026

Assets

Total assets were $283,984 million, a slight decrease from $285,372 million at March 31, 2026, but a 26% increase from $225,106 million at December 31, 2025. Loans and leases (net of allowance) were $186,173 million, compared to $185,575 million at March 31, 2026, and $147,105 million at December 31, 2025.

Liabilities

Total deposits were $222,466 million, a slight decrease from $223,482 million at March 31, 2026, but a 26% increase from $176,610 million at December 31, 2025. Short-term borrowings increased to $3,111 million, up 66% from March 31, 2026, and 147% from December 31, 2025. Long-term debt was $18,738 million, a -13% decrease from March 31, 2026, but a 9% increase from December 31, 2025.

Shareholders’ Equity

Total Huntington Bancshares Incorporated shareholders’ equity was $32,624 million, a slight increase from $32,535 million at March 31, 2026, and a 34% increase from $24,342 million at December 31, 2025.

Loans and Leases Composition

Total loans and leases were $189,422 million, with commercial and industrial loans at $91,378 million (49% of total), commercial real estate loans at $23,457 million (12%), residential mortgage loans at $33,221 million (18%), and automobile loans at $15,460 million (8%). By business segment, Consumer & Regional Banking loans accounted for $103,317 million (55% of total) and Commercial Banking loans for $86,089 million (45%).

Deposits Composition

Total deposits were $222,466 million, comprising demand deposits - noninterest-bearing at $40,129 million (18%), demand deposits - interest-bearing at $62,395 million (28%), money market deposits at $75,717 million (34%), and time deposits at $25,405 million (11%). By business segment, Consumer & Regional Banking deposits were $150,687 million (68% of total) and Commercial Banking deposits were $62,713 million (28%).

Operational Metrics - As of June 30, 2026

Huntington Bancshares Incorporated had an average of 26,407 full-time equivalent employees, 1,407 domestic full-service branches, and 2,016 ATMs.

Mortgage Banking Noninterest Income - Three Months Ended June 30, 2026

Mortgage banking income was $53 million, up 66% from $32 million on March 31, 2026, and 89% from $28 million on June 30, 2025. Net origination and secondary marketing income was $45 million, up 29% from March 31, 2026, and 73% from June 30, 2025. Total net mortgage servicing income was $8 million, compared to -$4 million on March 31, 2026, and $2 million on June 30, 2025. Mortgage origination volume was $3,581 million, an increase of 54% from March 31, 2026, and 48% from June 30, 2025.

Outlook / Guidance

Huntington Bancshares Incorporated successfully completed the Cadence systems conversion in mid-June, marking its last major integration milestone. The company anticipates realizing the full economic benefits of its combined operations, with a clear path to remaining cost synergies and active pursuit of revenue synergies. Management is confident in its outlook, supported by strong business momentum and its differentiated super-regional model, which is expected to help achieve financial targets including sustained earnings growth, tangible book value increases, and attractive shareholder returns.